Malkiel_Random Walk_Chapter 16

Malkiel_Random Walk_Chapter 16 - Chapter 16 Raising Capital...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Chapter 16: Raising Capital Companies raise Capital through borrowing (debt financing) or selling portions of the firm (equity financing). Venture Capital: financing for new, often high-risk ventures This money comes from wealthy individuals, pension funds, insurance companies, large corps, university endowments o Very high risk, high reward o Usually offers money through different stages to reduce risk Private equity is used to label equity financing for nonpublic companies Selling Securities to the Public To issue to the public, there are steps to follow: o Must obtain approval from board of directors o Must prepare a registration statement and file with SEC o SEC examines registration statement during a waiting period General Cash offer: securities offered to the general public Rights offer: Securities initially offered only to existing owners IPO: (or unseasoned new issue) The first issue when a company goes public
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern